Forex: EUR/USD Can Break 1.2825 or 1.2650 with the Right Conditions
We are heading into a trading week that historically sees a substantial drop in speculative participation and curb on trend generation. Yet the fundamental fuel that has driven the Forex and capital markets recently still threatens to go nuclear. If a few key fundamental developments compliment a curb in sentiment trends - which would naturally correct the risk off move this past week - EURUSD, EURJPY, GBPJPY and CADJPY offer strong trade setups. Then again, EURUSD (along with the AUDUSD and NZDUSD shorts I already have on) can easily pander to speculative deleveraging if a Greek milestone isn't met on Tuesday. And, even if risk trends simply stall until the markets are topped off once again, there are exceptional setups that are ready to play out (USDJPY, EURCHF, AUDCAD and AUDNZD). We discuss all the conditions and trade opportunities for next week in the weekend video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.